Question: A restaurant with 100 seats, serving both lunch and dinner 6 days per week, reported total annual sales revenue of $998,000. Dinner generates 68% of

A restaurant with 100 seats, serving both lunch and dinner 6 days per week, reported total annual sales revenue of $998,000. Dinner generates 68% of total sales revenue, with a seat turnover of 1.75. What is the average check for dinner? a. $12.43 b. $18.28 c. $646.32 d. $950.48

2. Determine the operating income necessary to yield net income of $56,000 using a current tax rate of 30%. a. $80,000 b. $186,667 c. $92,857 d. $216,667

3. A small motel operation with 50 rooms has an average yearly occupancy rate of 74%. The forecasted sales revenue for the coming year is $842,712. What is the average room rate expected to be? a. $19 b. $23 c. $62 d. $228

(Questions 4 10) A motel has 30 rooms and expected 70% occupancy next year. The owners investment is presently $520,000, and they expect a 12% after-tax annual return on their investment. The motel is in a 24% tax bracket. The motel is carrying two mortgages: the first mortgage in the amount of $359,000 at a 10% interest rate and the second mortgage in the amount of $140,000 at a 14% interest rate. Current book value of the building is $632,000, and depreciation rate is 5%. Present combined book value of furniture and equipment is $117,000, and the combined depreciation rate is 20%. Indirect costs are $44,800 and direct costs are $59,300. The motel also receives an additional $12,000 a year leasing out its restaurant.

4. What is a net income required (return on investment)? a. $6,240 b. $12,480 c. $62,400

5. What is the operating income to cover the net income required? a. $70,909 b. $82,105 c. $164,210

6. What is the amount of total costs and expenses? a. $104,100 b. $110,500 c. $202,600

d. $124,800 d. $260,000 d. $214,600

7. What is the sales revenue required to cover all expenses and costs and to provide the owners with their desired return on investment? a. $272,705 b. $284,705 c. $296,705 d. Cant determine

8. In order to generate the sales revenue required from Question 7, what is the required average room rate? a. $30 b. $37 c. $42 d. $55

9. Assuming a 60% double occupancy and a $12 difference between singles and doubles, what is the average single room rate? a. $30 b. $37 c. $42 d. $55

10. Assuming a 60% double occupancy and a $12 difference between singles and doubles, what is the average double room rate? a. $30 b. $37 c. $42 d. $55

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

AW 200 ( 41.7 wide-flange beam (see Table E-1(b). Appendix E) is simply supported with a span length of 2.5 m (see figure). The beam supports a concentrated load of 100 kN at 0.9 m from support B. At...

A restaurant with 108 seats, serving both lunch and dinner 6 days per week, reported total annual sales revenue of $988,000. Dinner generates 65 percent of total sales revenue, with a seat turnover...

FK A restaurant with 100 seats, serving both lunch and dinner 6 days per week, reported total annual sales revenue of $998,000. Dinner generates 68% of total sales revenue, with a seat turnover of...

Can you please explain the steps of how to get to the answer $18.28 for this problem? A restaurant with 100 seats, serving both lunch and dinner 6 days per week, reported total annual sales revenue...

E6.6 A restaurant with 108 seats, serving both lunch and dinner 6 days per week, reported total annual sales revenue of $988,000. Dinner generates 65 percent of total sales revenue, with a seat...

this is accounting and finance E6.3 A restaurant with 90 seats, serving both lunch and dinner 7 days per week, reported total annual sales revenue of $998,000. Dinner generates 68% of total sales...

In the Entrepreneurship program, we introduce three (3) common startup models used by entrepreneurs to conceive and launch new ventures: the traditional model, customer discovery model, and the...

You work for Siemens Power Generations systems and are responsible for the sale of large, expensive ($2-5 million) turbine generators to Power Utility companies. You have been contacted by the...

A vertical plate is submerged in water and has the indicated shape. An isosceles triangle is submerged in water pointed down. The base of 6 ft is horizontal and 7 ft below the surface of the water....

The ledger of Swann Company contains the following balances: D. Swann, Capital $30,000; D. Swann, Drawing $2,000; Service Revenue $50,000; Salaries Expense $27,000; and Supplies Expense $4,000....

Carow Corporation purchased, as a held-to-maturity investment, $60,000 of the 8%, 5-year bonds of Harrison, Inc. for $65,118, which provides a 6% return. The bonds pay interest semiannually. Prepare...

Mark Twains VISA balance is $1,124.40. He may pay it off in 18 equal end-of-month payments of $75 each. What interest rate is Mark paying?

For its top managers, Worldwide Travel formats its income statement as follows: Worldwide's relevant range is between sales of $245,000 and $364,000. Requirements 1. Calculate the contribution margin...

John Kyler is considering starting a Web-based educational business, e-Prep MBA. He plans to offer a short-course review of accounting for students entering MBA programs. The materials would be...

Consider the following table of activities A through G in which A is the start node and G is the stop mode What is the early start for Activity A (how soon can activity A start)? Consider the...

2. Find five metaphors for communication.

5. Starting with a motive you may have for acting the way you do in a particular situation: a) What purpose did you seek to achieve? b) Which aspects of your past and your surroundings influenced...

3. (Constructing a metaphor about something can be done by comparing it to something else by using the word is. For instance, Communication is a bridge between people.